DTH

BENGALURU: US Pay-TV player Dish Network Corporation (DNC) reported 1.7 percent higher year-on-year (YoY) total revenue for the quarter ended 31 March, 2016 (Q1-2016, current) at $3,787.24 million as compared to $3,724.23 million in the year ago quarter. Subscriber related revenue increased 2.2 per cent YoY to $3,775.48 million in the current quarter as compared to $3,693.53 million in Q1-2015. The company lost 139,000 Pay-TV subscribers. Its subscriber base in the current year declined 1 per cent to 13.874 million in the current year as compared to 14.013 million in Q1-2015.

The company reported 2.6 per cent growth in average revenue per user (ARPU) in Q1-2016 to $87.94 from $85.73 in the corresponding year ago quarter. DNC says that increase in Pay-TV ARPU was primarily attributable to the DISH branded Pay-TV programming package price increases in February 2016 and 2015. These increases were partially offset by a shift in DISH branded Pay-TV programming package mix, an increase in Sling TV subscribers and a decrease in premium and pay-per-view revenue. The company says that Sling TV subscribers generally have lower priced programming packages than DISH branded Pay-TV subscribers, and therefore, to the extent that Sling TV subscribers increase, it has a negative impact on Pay-TV ARPU.

DNC’s subscriber churn declined by a single basis point to 1.63 per cent in the current quarter as compared to 1.64 per cent in Q1-2015. DNC added 657,000 gross subscribers in Q1-2016 as compared to 723,000 subscribers in Q1-2015. The company says that its Pay-TV churn rate continued to be adversely affected by increased competitive pressures, including aggressive marketing, bundled discount offers combining broadband, video and/or wireless services and other discounted promotional offers, as well as cord cutting.

DNC reported lower subscriber acquisition costs in the current quarter at $648 per subscriber as compared to $667, or a drop of 2.9 per cent or $19 per subscriber. DNC says that this change was primarily attributable to a decrease in hardware costs per activation. The decrease in hardware costs per activation was driven by a higher percentage of remanufactured receivers being activated on new DISH branded pay-TV subscriber accounts and by a reduction in manufacturing costs related to certain receiver systems